Effective central bank supervision of the banking network to strengthen the national currency

Ali Salehabadi, while attending the Khabar 21 studio on Wednesday night of One Sima channel, about the strategies to promote and maintain the value of the national currency, added: “One of the effective issues to strengthen the national currency is the effective supervision of the central bank over the banking network.”

He continued: “Banks should support the production sector, productive economic sectors and housing, and facilities should move in this direction and the activity of investments in non-productive economic sectors should be avoided.”

Salehabadi pointed out: The central bank should have effective supervision over the consumption of banking facilities, and this supervision is definitely effective in inflation; If capital goes to unproductive sectors and there is no control over the consumption of facilities, it causes inflation, while supporting production and helping the productive sector in society can contribute to economic growth and also prevent inflation.

The Governor of the Central Bank stated: “The issue of controlling overdrafts is also very important in inflation, and the fact that banks have overdrafts from the central bank will increase the monetary base, liquidity and inflation in society.”

He said: “One of the serious plans of the Central Bank is to eliminate the imbalances that exist today in the banking network, assets and liabilities of the banking system, as well as imbalances in the income and expenses of the banking system, with the cooperation of the banking system and banks.” In such a way that banks’ overdrafts from the central bank are controlled, which affects inflation.

Salehabadi continued: “Another issue is the government’s budget deficit and the government’s need for liquidity, which is the government’s overdraft from the central bank and the budget deficit through the central bank’s resources is one of the roots of inflation;” Of course, in coordination with the Ministry of Economy and Finance and other government agencies, we try to provide government revenue sources through non-inflationary methods, as if overdrafts from the central bank have been controlled in the last 40 days since the new government took office, and other methods of financing The government is doing it.

The Governor of the Central Bank added: “Selling the surplus property of the banking network is one of the issues that will be pursued; The central bank’s assistance to banks in reducing bank arrears can also affect the banking system and control overdrafts from the central bank.

Regarding exchange rate fluctuations, he said: “Stability in the foreign exchange market will be pursued by the central bank and other members of the government;” The foreign exchange market must be predictable for economic actors, so we will adopt the necessary policies in this regard; Of course, there are various policies in this field, such as strengthening our banking interactions with friendly and partner countries, which is part of serious programs, as well as strengthening the country’s non-oil exports and interaction with the private sector. Nima market and system can help balance the market.

Salehabadi noted: “We must be able to balance supply and demand in the foreign exchange market to create a calm in the foreign exchange market.”

The Governor of the Central Bank added: “We will strengthen the policies for the supply of foreign exchange, and in terms of the demand for foreign exchange, the country’s priorities will be considered, and we must also look at domestic production for development.”

He continued: the country’s banking system should be at the service of the people; We must act in such a way as to facilitate public access to the banking system and banking facilities, and one of the priorities in this regard is to validate the banking system instead of focusing solely on collateral for facilities. And it’s the right customer rank that should be considered.

Salehabadi emphasized: we must develop the ranking system in the country so that people can receive facilities with a suitable and well-calculated rank and with their desired status.